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BMW GPE08 Day 1: Rolls-Royce talks up its new small saloon

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This week marks the beginning of BMW Group Press Event 2008, a veritable orgy of information on all the latest from Rolls-Royce, BMW and MINI.

Night number one kicked off with the guys from Goodwood -- Rolls-Royce. No drives, chauffeured or otherwise, just dinner and conversation with several key executives, including Chairman and CEO of BMW North America, Tom Purvis, and Chairman and CEO of Rolls-Royce, Ian Robertson, as well the global premiere of a new Rolls-Royce model.



We've agreed not to release any information on that model until the embargo breaks at 12:01am Sunday morning, but in the meantime, we can offer up some very interesting information about how Rolls is doing and what have they in store for the future -- including some tidbits on the rumored small Roller.

Here are the goods:

* The new, smaller Rolls-Royce should debut in 2009 as a 2010 model and is internally coded the RR4, following the naming convention for the Phantom (RR1), Drophead (RR2), and model whose name will be revealed on Sunday (RR3)

* RR4 is significant for the brand as show of strength and expansion. Rolls-Royce had record sales in 2007, breaking the 1000 unit sales mark (1010 vehicles sold worldwide) for the first time ever. Understandably, it is looking to expand production capacity with the introduction of the RR4. To this end, Rolls-Royce's sole plant, on Lord March's 12,000 acre estate in Goodwood, England, has recently been expanded to include a new assembly line and another shift (up from one shift to two) that should double output. For a company that only sold 300 units in 2003, this is big news indeed.

* RR4 should retail between $250,000-280,000, which puts it squarely in Bentley Arnage territory, though it should be sized more like the smaller Flying Spur. Rolls-Royce executives are quick to point out that there are few comparisons in this competitive set, not just in price, but objective -- smaller and sporty, but still the utmost in ultra premium transportation.

Graham Biggs, Rolls-Royce Corporate Communications Director, put it this way, "In the $100,000-200,000 price range, there are lots of cars. The RR4 buyer might have had a Flying Spur, an S-Class, or 7-series, but is looking to upgrade."

* Though it will be built in Goodwood alongside the Phantom and Drophead, the RR4 will not share architecture and will built on the new line. RR4 will share technology from BMW, including engine parts and electronics (iDrive) but only where it makes sense. Biggs explains, "It makes perfect sense to use BMW tech, but not at customer touch points; where customers, see, feel, etc..."

More interesting news from Ian Robertson, Chairman and CEO of Rolls-Royce on the current state of the brand:

Rolls-Royce Phantom long wheelbase

* Of the 1010 Rolls-Royce models sold globally in 2007, just under 400 went to the United States, making it far and away the largest market. The UK was second with 130, while China finished a strong third at 110 units sold. That fact is particularly interesting, given that all Chinese buyers pay a 300 percent tax, which turns a $400,000 Phantom into a cool million car.

* Which are fourth and fifth largest markets? Taken together, the United Arab Emirates accounts for fourth place, but if you separate them into their respective countries, primarily Abu Dhabi and Dubai, Japan moves from fifth to fourth.

* The split between the owners that prefer to drive or be chauffeured is also telling. In North America, Robertson says 90 percent of Rolls-Royce owners drive their cars. In Asia and the Middle East, the ratio is reversed -- 90 percent of owners prefer to be driven.

* Buying habits also say a lot about North Americans. We're the only market where the dealer specifies the cars that are to be sold, partly because the North American consumer is impatient and will not wait the 4-5 months it would take to custom build a Phantom, or join the 18-20 month list for the Drophead. Apparently, we Norte Americanos want it now, and want to drive it right off the lot.

* Asia is different, says Robertson. There the customers are excited about the bespoke business model, and are perfectly happy to wait 10-12 months as their car is built to order. In fact they will often visit the factory one or two times to check out the progress on their vehicle and make last minute changes. Robertson says the Asian consumer seems to enjoy on the uniqueness of the car; in fact they sell more extended wheelbase (EWB) models in Asia because the longer chassis allows for greater customization.

* On the topic of the long wheelbases, you should know that due to the aluminum space frame construction of the Phantom, you don't have to stop at the 10-inches of extra wheelbase on the EWB. If you'd like a longer saloon, Rolls-Royce can accommodate nearly any length you'd like -- though the typical extensions are 15.7-inches (400mm) and 47.2-inches (1.2 meters), at which point you get another set of seats (facing the rear) and doors that open ahead of the scissoring rear doors. As far as the breakdown goes; EWB Phantoms make up 90 percent of the models sold in the Middle East, 60 percent in China, and only 10 percent in the US.

* If a custom EWB is not enough, Rolls-Royce also sells an armored version of the Phantom, which Robertson admits adds a lot of weight and complexity, since their armor is rated at a Central European Norm (CEN) protection level of B7. This means it will stop most standard military-grade small-arms fire and explosives, including mines, hand grenades, and those cool plastics you see in movies. For armoring, Rolls use of aluminum presents some problems, since heavy steel plating and aluminum don't mix. Special measures must be taken to insure that corrosion via electrolysis doesn't occur at the places where the two come together.

* More interesting sales trivia overheard: In the UK, BMW's Rolls-Royce marque outsells Mercedes-Benz's Maybach brand ten to one. No idea what the ratio is in the U.S., but the single largest Rolls-Royce dealer in the world's biggest Rolls-Royce market is just down the street from our office in Bevery Hills, California.

And that's it for day one of the BMW Group Press Event 2008. Check back with us regularly, as over the next three days we'll have drive reports on the BMW M3, 128, and MINI Clubman. Stay tuned.

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